Car insurance: An overview
Car or automobile insurance is about safeguarding you, your family, and your car. Even if you buy a car on loan, the lender will necessitate that you purchase a car insurance policy for your car. This has been made a compulsory requirement under the law. Having a good car insurance policy in place will also protect you from damages or losses caused to third party life or property because of an accident where you have direct involvement. Other people who may drive your car can also be protected through a car insurance policy. You will get these services against a fee, which is known as premium.
It has been noticed that car insurance rates have been gradually rising in India. Hence, it is quite crucial that you get the most affordable insurance rates for your vehicle. For getting the best rate, you have to compare car insurance quotes available on the Internet. This will help you in getting the best deal on car insurance.
Car insurance market in India is a pretty competitive market. Sometimes, it becomes quite difficult to choose the right vehicle insurer. It will take time to determine which policy is cost effective and all-inclusive. On many occasions, you might feel that auto insurance is complicated and unnecessary. However, you should remember that insuring your car can save you from spending a fortune afterwards. Online comparison of quotes can help you save upto 40% of your premium costs.
What is covered by car insurance?
Insuring your automobile is compulsory according to law. It is a legitimate necessity to buy a minimum extent of insurance prior to driving a car on the Indian roads. Auto insurance coverage may vary from one insurer to another, nevertheless given below are the normal coverages offered by an insurer:
- Bodily injury liability - You will get protection for bodily injury liability claims of individuals who become injured in a motor vehicle accident, where you are involved.
- Property damage liability – It protects you from damages or losses caused to properties of third parties like the vehicle of another individual.
- Medical payments - This amount is paid to the policyholder and other passengers in the vehicle of the policyholder.
- Uninsured and underinsured motorist coverage - This coverage offers protection to you if the hit-and-run driver doesn't have any insurance cover or has inadequate insurance. In majority of states in India, this only compensates for bodily injury losses, however some Indian states do incorporate property damage losses.
- Physical damage coverage - It offers protection from damage or loss to your vehicle in the following events:
If your car gets into an accident
If your vehicle is damaged due to windshield breaks or storm.
Benefits of car insurance
Why do you need car insurance? The answer is quite simple. Insuring your car is compulsory under law. If you drive your car without insuring it, it is a punishable offense in India. If there is an accident or damage where a third party is involved, the policy compensates the third party in the event of death or injury caused to third party or any damage or loss caused to the car of a third party. This kind of insurance is known as third party insurance and it not only protects you but also other passengers/family members who may be driving or traveling in your car.A comprehensive auto plan protects your vehicle from both man-made and natural calamities such as theft, terrorist attacks, earthquakes, riots, hurricane, and cyclone. This will be offered on top of third party liability coverage.
If you purchase a car insurance policy, you will receive a number of salient benefits which include the following:
- An auto insurance policy offers benefits to survivors when a motor vehicle accident leads to death.
- It offers protection from legal suits, which includes legal charges framed against you because of a road mishap where you are involved.
- Offers protection for damages resulting from events other than a motor vehicle accident, for instance, fire, theft, etc.
- Compensates the expenses of car renovation because of damages or losses caused due to a vehicle accident
- Extra discounts: Auto insurance policies offer discounts on premium for installing antitheft devices or purchasing more than one policy with the same carrier. In addition, it offers additional benefit to provide coverage to others driving your vehicle with your consent.
- No Claim Bonus: If you have not filed a claim throughout the entire policy term, a No Claim Bonus will be provided on renewing the policy given that you satisfy specific terms and conditions.
How can you reduce your car insurance premium?
You can lower your auto premium in the following ways:- Drive your car safely
- Raise your deductible
- Equip your car with safety and anti-theft devices such as airbags, immobilizers, and antilock brakes.
- Pay your premium diligently
- Park your car in a garage
- Always go for a not-so-costly vehicle
- Delete the names of the inexperienced drivers from your policy
- Please make sure that you get the No Claim Bonus correctly
- Always state the facts while purchasing or renewing a policy. Don't hide any details.
- Always get everything in writing.